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    Sports Brand Price Rises &Nbsp; Experts Say The Cost Pressure Is Not Rising.

    2011/7/28 13:48:00 29

    Sports Brand Price Increase Cost

    Since the first quarter of the price increase, a number of domestic sports brands including Lining [9.593.90%] have begun brewing a new round of price increases. Zhu Qinghua, a light industry researcher at CIC, pointed out that increasing cost pressures is an indisputable fact. domestic Sports brand is far from reaching the limit.
     


    Researchers say the cost pressure is not up to the level of inflation.


    Since the first quarter of the price increase, a number of domestic sports brands including Lining [9.593.90%] have begun brewing a new round of price increases. Today, when cotton prices fall from high, the theory of "rising costs" is no longer tenable, but why do many brands continue to raise prices?


    Some brands rose to two figures.


    Reporters learned from some domestic sports brand enterprises that a new round of price increases is brewing in the industry. Xu Ruikun, Lining's public relations manager, confirmed to reporters that Lining's fourth quarter orders will end at the end of June, of which the average retail price of clothing and shoes has increased by more than 10%.


    In addition, an insider of Anta revealed that the retail price of the market had been adjusted before. However, since Anta will announce its first half performance in August, the company will probably adjust its price in the fourth quarter according to the actual situation.


    In fact, this is not the first price increase in a sports brand year. As early as the end of March this year, Nike "led" triggered a number of domestic brands "follow suit" to raise product prices, some products. Price The increase reached two figures.


    In the face of the rising price trend of domestic sports brands, consumers said they could not afford to hurt. Many netizens also quipped: "Lining, it is possible to raise prices", "Anta, the price will never stop", "361 degrees, more than one yuan"......


    Price rise "coincide" as what?


    Why are prices rising so frequently? Many brands adhere to the "cost push theory", saying that the cost factors such as the rental of materials, human resources and commercial real estate rents have led to the low profit margins of enterprises.


    Zhu Qinghua, a light industry researcher at CIC, pointed out that increasing cost pressures is an indisputable fact, but the domestic sports brand is far from reaching the point where it can not rise.


    Reporters found that the price of "crazy cotton", which was once the main driver of price adjustment in the last round of sports brands, has actually dropped from high and is hard to become the reason for the price rise of sports brands. The Zhengzhou futures exchange's near delivery month settlement price has dropped from 30 thousand yuan after the Spring Festival to 24 thousand yuan level. The main reason for supporting the price of several sports brands in the first quarter has been untenable, and the domestic sports brand has chosen to adjust the price again at this time, which is surprising.


    Similarly, as one of the raw materials of clothing, the price of chemical fiber has dropped markedly after entering the second quarter. According to the data of China textile net, the price of PTA in the East China market has dropped by more than 16% in the past three months. "From the second half of 2010 to the first half of this year, the price trend of PTA shows that 4~5 is in a weak state this year, which is related to the decline of international crude oil prices in April. The return of PTA price has also lost the driving force of cotton. Compared to the high price in March and April, the price of PTA is falling further. It seems that the price of sports brand is not up to date now. Liu Xintian, editor in chief of commodity data business, said.


    In addition, the "labor shortage" led to a significant increase in the cost of labor in Jiangsu and Zhejiang textile enterprises, and remained stable at the end of the two quarter.


    "In fact, the profit margins of sports brands are enough to digest the pressure brought by the rising costs, and the brand chooses to increase the price at this time. First, we can take the cost pressure as a reason, weaken the sensitivity of consumers to the price increase, and second, we can improve the profit margin and maintain the leading position." Zhu Qinghua said.


    Repeated increases in price have dampened market sales to some extent. Take Lining as an example. Price increase Orders for clothing and footwear products fell by more than 7% and 8% respectively in the second quarter of this year.


    Bid farewell to "be" to raise prices should be multi pronged.


    Industry experts pointed out that in the competition with international brands, domestic brands must recognize their target groups, and can not easily follow suit and raise prices. They must "preserve quality and protect prices". Local brands should be cautious in adjusting prices, and they should not "rise in line". When we really need to adjust prices, we must have a clear price gradient for price adjustment time, price adjustment and price adjustment areas, so as to reduce the loss of consumers.

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